business π§Ύ Bank Deposits: Prove Where Your Cash Comes From
A recent ITAT case involving an 83-year-old woman underscored the need to document all bank deposit sources. The assessing officer initially questioned Rs 2.42 lakh in bank credits and Rs 1.06 lakh in cash deposits. Bank records later confirmed the Rs 2.42 lakh was maturity proceeds from a Rs 2 lakh fixed deposit. Furthermore, prior cash withdrawals helped explain the Rs 1.06 lakh cash deposits, leading to ITAT deleting the additions. This shows a deposit isn't automatically taxable if the source is clearly explained. π§Ύ